Bitcoin Mining Machines on the Brink of Loss: Industry Faces Profitability Crisis
The Bitcoin mining sector is under intense pressure as declining profitability puts popular mining machines, including Bitmain’s Antminer S19 Pro series, at risk of operating at a loss. With record-high mining difficulty and Bitcoin’s price dipping below $96,000, miners face a brutal profitability squeeze that could force many to shut down operations.
"The Antminer S19 Pro, once an industry flagship, now struggles to remain profitable as mining hashprice drops to $53 per PH/s."
Key Challenges for Bitcoin Miners
Record-High Mining Difficulty & Falling Bitcoin Prices
Bitcoin difficulty surged last week, making mining harder and less profitable.
Bitcoin’s price drop below $96,000 further reduced mining revenue per terahash.
Power Costs vs. Profitability
Antminer S19 Pro (110 TH/s, 3,250W) is barely breaking even in regions with high electricity costs.
Revenue at $53 per PH/s: An S19 Pro generates only $0.076 per kWh, meaning miners paying higher electricity or hosting fees are mining at a loss.
Next-Gen Hardware Also Feels the Pressure
Bitmain’s S19XP Hydro (20.8 J/TH) marketed at $9 per TH/s with a $0.01 per kWh hosting fee still delivers minimal profit.
Buyers of these new-generation miners earn just $0.106 per kWh, leaving only fractions of a cent in profit.
Impact on the Bitcoin Network
Miner Capitulation & Slower Block Times
Some miners have shut down, causing average Bitcoin block times to extend to 10 minutes and 23 seconds, indicating a global hashrate slowdown.
Coin Metrics estimates that S19 models account for 60% of Bitcoin’s total hashrate, meaning widespread shutdowns could impact network security.
Large Mining Operators Under Pressure
Cango, now the third-largest public Bitcoin miner, reportedly purchased 32 EH/s of S19XP units last year, but its hosting costs remain undisclosed.
Silver Lining: Next Difficulty Adjustment
Potential Relief on February 23
The next mining difficulty retargeting could ease competition, helping miners regain profitability.
If hashrate growth slows, mining conditions may temporarily stabilize.
